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Navistar Closes Alliance with Volkswagen Truck & Bus GmbH
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Navistar International Corporation announced the closing of strategic alliance with Volkswagen Truck & Bus GmbH, a subsidiary of Volkswagen AG . The pact involves the purchase of 16.2 million Navistar shares by Volkswagen Truck & Bus, representing 16.6% of the company’s outstanding shares, as well as framework agreements for strategic technology and supply collaboration. A procurement joint venture, Global Truck & Bus Procurement LLC, has also been formed to begin work. The sale of equity led to Navistar receiving $256 million for the deal, to be used for general corporate purposes. The transaction closed following the receipt of all necessary regulatory approvals, finalization of agreements related to the technology and supply collaboration and procurement joint venture. Other customary closing conditions were also satisfied.
Navistar expects the alliance to be beneficial to both the companies in the near and long term. The company will focus on the collaboration in order to increase global scale, enhance competitiveness and provide customers with better products, technology and services.
As part of this alliance, Volkswagen Truck & Bus' Chief Financial Officer Mr. Renschler and Matthias Gründler will also be joining Navistar’s board of directors.
The procurement joint venture will source parts for both the companies, which should increase their scale and competitiveness. The joint venture will provide opportunities which will lead to quality improvement and cost reduction.
The joint entity will be operating from Navistar's headquarters in Lisle, IL. It will have representatives from both the companies. The joint venture will be dealing with the demand of five brands including Volkswagen Truck & Bus' Scania, MAN and Volkswagen Caminhoes e Onibus along with Navistar's International and IC Bus brands.
Over the past one year, Navistar’s shares gained 164% while the Zacks categorized Auto/Truck Original Equipment industry saw a 22.9% increase. The stock’s rally was driven by benefits from the alliance with Volkswagen, product launches, cost-saving initiatives and increased production at plants.
Zacks Rank & Key Picks
Navistar currently carries a Zacks Rank #3 (Hold).
For the current year, Lear Corporation, American Axle and General Motors expect earnings growth of around 8.9%, 8.1% and 9.4%, respectively.
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Navistar Closes Alliance with Volkswagen Truck & Bus GmbH
Navistar International Corporation announced the closing of strategic alliance with Volkswagen Truck & Bus GmbH, a subsidiary of Volkswagen AG . The pact involves the purchase of 16.2 million Navistar shares by Volkswagen Truck & Bus, representing 16.6% of the company’s outstanding shares, as well as framework agreements for strategic technology and supply collaboration. A procurement joint venture, Global Truck & Bus Procurement LLC, has also been formed to begin work. The sale of equity led to Navistar receiving $256 million for the deal, to be used for general corporate purposes. The transaction closed following the receipt of all necessary regulatory approvals, finalization of agreements related to the technology and supply collaboration and procurement joint venture. Other customary closing conditions were also satisfied.
Navistar expects the alliance to be beneficial to both the companies in the near and long term. The company will focus on the collaboration in order to increase global scale, enhance competitiveness and provide customers with better products, technology and services.
As part of this alliance, Volkswagen Truck & Bus' Chief Financial Officer Mr. Renschler and Matthias Gründler will also be joining Navistar’s board of directors.
The procurement joint venture will source parts for both the companies, which should increase their scale and competitiveness. The joint venture will provide opportunities which will lead to quality improvement and cost reduction.
The joint entity will be operating from Navistar's headquarters in Lisle, IL. It will have representatives from both the companies. The joint venture will be dealing with the demand of five brands including Volkswagen Truck & Bus' Scania, MAN and Volkswagen Caminhoes e Onibus along with Navistar's International and IC Bus brands.
Navistar International Corporation Price
Navistar International Corporation Price | Navistar International Corporation Quote
Price Performance
Over the past one year, Navistar’s shares gained 164% while the Zacks categorized Auto/Truck Original Equipment industry saw a 22.9% increase. The stock’s rally was driven by benefits from the alliance with Volkswagen, product launches, cost-saving initiatives and increased production at plants.
Zacks Rank & Key Picks
Navistar currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the auto space include American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) and General Motors Company (GM - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
For the current year, Lear Corporation, American Axle and General Motors expect earnings growth of around 8.9%, 8.1% and 9.4%, respectively.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>